Leigh Insurance Agency of St Augustine Blog
Beneficiary designations are a simple way to ensure your loved ones receive assets directly, but they can also pose issues. You must ensure that your beneficiary designations are properly done and submitted to the financial institution, and mistakes can be expensive. This article will teach you about naming beneficiaries the right way.
Why is it necessary for me to name a beneficiary?
Many financial instruments, including life insurance benefits, are not governed by your will, so make sure you've named a beneficiary for your policies and accounts. This way ensures that your policy's benefits are dispersed as you wish.
Although naming a beneficiary is not required, it is typically the reason people get life insurance in the first place to provide a benefit to someone they care about. When you die, your other assets may also be useful to the people you care about.
Checklist for Beneficiaries
To avoid unforeseen outcomes, follow these guidelines.
Mention The Complete Names Of Your Beneficiaries
Many documents, such as a will, life insurance policies, retirement funds, and bank accounts, require naming a beneficiary, except for joint accounts, which transfer to the survivor when you die.
It's good to name a beneficiary on all of your accounts. If you don't choose a beneficiary, your estate may take a long time to go through probate court, which is time-consuming and costly and often leads to family feuds.
Have Reliable Recipients
Even for your spouse, naming contingent beneficiaries in a will and other documents is a good idea because you can't plan for everything. Having a contingent beneficiary or numerous contingent beneficiaries gives you peace of mind if your primary beneficiary cannot be found or refuses to accept your assets for some reason.
As a result, you'll have backup people or entities mentioned. This will prevent your assets from being distributed to the incorrect persons, state-designated beneficiaries, or even the state itself in some cases.
Don’t Plan Your Estate Alone
Even if your estate plan only consists of a will and a life insurance policy, it's a good idea to have an attorney look through it. You'll have peace of mind knowing that they'll double-check your accounts to ensure that beneficiaries are named and that all of your accounts and documentation will be properly prepared.
Keeping these in mind will help you plan your estate so that you can decide how to divide your assets wisely ahead of time. That will give you peace of mind, knowing that you've done everything necessary to ensure that your assets are properly passed down to the correct individuals.
At Leigh Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (904) 826-0799 or Click Here to request a free quote. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.